Introduction

The Education and Skills Funding Agency (ESFA) funds academies (including free schools, university technical colleges and special academies) on the same basis as maintained schools. We base allocations and payments to academies on an academic year, compared with financial year for maintained schools.

Annual allocations

2018 to 2019 academic year

She confirmed the introduction of a national funding formula (NFF) for schools funding and for high needs funding. For 2018 to 2019, we’ve used the NFF to calculate notional school-level allocations which, in turn, we’ve used to set the total funding available for schools in each local authority area. Local authorities continue to set a local formula to distribute that funding, in consultation with local schools forums, and to determine individual schools’ budgets in their areas in 2018 to 2019.

ESG protection arrangements for academies will remain the same for 2018 to 2019, which means no academy will see losses of more than 3% of their overall budget as result of the ending of ESG.

General annual grant allocation statements for 2018 to 2019 timetable

We’ve uploaded academy GAG allocation statements for 2018 to 2019 academic year for all academies open on 1 January 2018. These are available in Document Exchange. If you’re unsure about your access to Document Exchange there’s guidance about accessing Document Exchange available on GOV.UK.

Allocations for 2018 to 2019 for February and March 2018 opening academies will be issued by late April 2018.

You can read the funding allocation pack (FAP) guides to help you understand your allocation. They include sample tables, and explain how we calculate each element. You can also read FAP guides for academies opening during the academic year.

Academy funding in 2017 to 2018 : an overview

We calculate most of an academy’s revenue funding using the pupil numbers taken from either the autumn census return or an agreed estimate of pupil numbers, as outlined in the academy’s funding agreement.

We used pupil numbers recorded in the October 2016 census to calculate funding for the 2017 to 2018 academic year.

We use the local authority formula to calculate mainstream provision, and place-led funding for pupils who attract high needs funding.

Each local authority agrees the funding factors and rates for their area in consultation with their schools forum. The funding formula for mainstream academies uses pupil-led factors such as basic entitlement, deprivation, prior attainment, mobility and English as an additional language (EAL), combined with factors based on the institution, such as a lump sum for premises costs, split site funding or a sparsity factor for small rural academies. ESFA uses the local funding model to calculate allocations for academies and free schools.

The general annual grant (GAG)

Most funding for academies comes from the general annual grant (GAG). This is made up of:

A minimum funding guarantee protects the school budget share. This means per-pupil funding will not fall by more than 1.5% compared with the previous year. The minimum funding guarantee calculation excludes funding for sixth forms and places in special units.

Where appropriate, the GAG may also include funding for high needs places, 16 to 19 students and startup funding for new institutions.

Education services grant (ESG) protection

From September 2017 the ESG general funding rate was removed. We put in place protection arrangements for academies following the removal of the ESG general funding rate. The percentage protection for an academy was determined by its level of ESG per pupil (ESG + ESG protection) in the 2016 to 2017 academic year.

The protection thresholds for 2017 to 2018 are set out in the table below:

ESG allocation per pupil in 2016 to 2017

ESG protection in 2017 to 2018

Up to £77 per pupil

Loss protected at 1% of total funding

More than £77 per pupil but less than £87 per pupil

Additional funding above £77 per pupil is protected at 2% of total funding

More than £87 per pupil

Additional funding above £87 per pupil is protected at 3% of total funding

Schools which convert to academy status from September 2017 onwards will not be eligible for ESG funding or ESG protection.

Academies revenue payments

ESFA pays academies’ GAG in 12 equal instalments in accordance with the terms set out in the academy’s funding agreement. A monthly remittance note accompanies each payment. Revenue funding: payments to academies explains how academies are paid and how to change bank details.

9 April 2018
We've updated the section 'General annual grant allocation statements for 2018 to 2019 timetable' to reflect that we have issued 2018 to 2019 academy GAG allocation statements for all academies open at 1 January 2018.

21 February 2018
We've added a link to the 2018 to 2019 academy general annual grant allocation guides

9 February 2017
Information added on timeline for 2017 to 2018 academic year allocations.

20 December 2016
Updated to include information on ESG protection.

2 November 2016
Updated information and removed information for academies funded on estimates to a separate page.

11 February 2016
Information about 2014 to 2015 removed. Details of pupil number adjustment for 2015 to 2016 added. Information about 2016 to 2017 funding added including education services grant rates.

23 October 2015
Link to funding video for 2016 to 2017 added.

2 June 2015
Links to funding videos on YouTube added.

11 March 2015
This page has been updated to include the pupil number adjustment calculator for the 2014 to 2015 academic year.

26 September 2014
Links to funding training videos and registration for webinars added.

24 September 2014
ESG rates for 2015 to 2016 academic year added and a link to a guidance note about the ESG changes.

24 July 2014
Updated to add a letter to academies about funding arrangement for 2015 to 2016

14 July 2014
Updated pupil number adjustment calculator added.

9 July 2014
Pupil number adjustment (PNA) details for the 2013 to 2014 academic year added.

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